Weaker pound helps markets

Health Care and Utilities were the two sectors that stood out as making exceptional progress

in October with the former just edging into a double-digit return. The only sector to decline

was Industrials.

Overall, the UK equity market made a meaningful advance of low single digits over the

month helped a little by the pound dropping against the dollar. Oil prices were little changed

in dollar terms, but the Energy sector did relatively well in October.

Over the year to date only three sectors - Communications, Consumer Discretionary and

Real Estate - have posted returns that are less than double-digits gains. The best performing

sector is Financials which is up by about one third.

There was a small, but meaningful, increase in forecasts for dividends to be paid by UK

companies next year. They came mainly from companies in the mining, energy and banking

sectors that have significant overseas interests and account in dollars.

Recent Posts